Derivatives and Fair Value of Financial Instruments (Tables)

3 Months Ended

Mar. 30, 2013

Derivatives and Fair Value of Financial Instruments

Schedule of assets and liabilities measured at fair value on a recurring basis

	Balance
	March 30,
(Thousands of dollars)	2013		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds	$	138,756	$	138,756	$	-	$	-
Corporate bonds	66,661		-		66,661		-
Enhanced cash mutual fund	25,011		25,011		-		-
U.S. Government agency securities	22,336		-		22,336		-
U.S. Treasury securities	20,855		-		20,855		-
Emerging markets debt mutual fund	18,750		18,750		-		-
Collateralized mortgage obligations	14,716		-		14,716		-
Asset backed debt securities	12,544		-		12,544
Trading securities - short-term investments:
High yield debt securities	24,190		-		24,190		-
Emerging markets trading debt mutual fund	3,237		3,237		-		-
Emerging markets trading debt securities	2,761		-		2,761		-
Other trading investments	985		453		532		-
Trading securities - other current assets:
Domestic equity securities	20,360		20,360		-		-
Foreign equity securities	7,371		5,011		2,360		-
Fixed income mutual funds	6,956		6,956		-		-
Money market funds	2,594		2,594		-		-
U.S. Treasury securities	1,984		-		1,984		-
U.S. Government agency securities	1,687		-		1,687		-
Corporate bonds	94		-		94		-
Other	245		202		43		-
Derivatives:
Commodities(1)	4,253		4,253		-		-
Foreign currencies	5,766		-		5,766		-
Total Assets	$	402,112	$	225,583	$	176,529	$	-
Liabilities:
Derivatives:
Commodities(1)	$	9,989	$	9,989	$	-	$	-
Interest rate swaps	8,803		-		8,803		-
Foreign currencies	-		-		-		-
Total Liabilities	$	18,792	$	9,989	$	8,803	$	-

(1) Seaboard’s commodities derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts.  As of March 30, 2013, the commodity derivatives had a margin account balance of $15,222,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $9,486,000.

The following table shows assets and liabilities measured at fair value on a recurring basis as of December 31, 2012 and also the level within the fair value hierarchy used to measure each category of assets.

	Balance
	December 31,
(Thousands of dollars)	2012		Level 1		Level 2		Level 3
Assets:
Available-for-sale securities - short-term investments:
Money market funds	$	126,537	$	126,537	$	-	$	-
Corporate bonds	69,214		-		69,214		-
U.S. Government agency securities	23,775		-		23,775		-
Emerging markets debt mutual fund	18,734		18,734		-		-
U.S. Treasury securities	17,169		-		17,169		-
Collateralized mortgage obligations	15,162		-		15,162		-
Asset backed debt securities	12,238		-		12,238		-
Trading securities - short term investments:
High yield debt securities	23,406		-		23,406		-
Emerging markets trading debt mutual fund	3,237		3,237		-		-
Emerging markets trading debt securities	2,600		-		2,600		-
Other trading investments	1,307		822		485		-
Trading securities - other current assets:
Domestic equity securities	15,864		15,864		-		-
Fixed income mutual funds	7,153		7,153		-		-
Foreign equity securities	6,831		4,218		2,613		-
Money market funds	3,157		3,157		-		-
U.S. Government agency securities	2,117		-		2,117		-
U.S. Treasury securities	1,567		-		1,567		-
Corporate bonds	60		-		60		-
Other	239		187		52		-
Derivatives:
Commodities(1)	6,916		6,699		217		-
Foreign currencies	-		-		-		-
Total Assets	$	357,283	$	186,608	$	170,675	$	-
Liabilities:
Derivatives:
Commodities(1)	$	7,112	$	7,112	$	-	$	-
Interest rate swaps	9,810		-		9,810		-
Foreign currencies	4,157		-		4,157		-
Total Liabilities	$	21,079	$	7,112	$	13,967	$	-

(1) Seaboard’s commodities derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts.  As of December 31, 2012, the commodity derivatives had a margin account balance of $14,063,000 resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $13,867,000.

Schedule of amortized cost and estimated fair values of investments and long term debt

	2013				2012
(Thousands of dollars)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Short-term investments, available-for-sale	$	316,724	$	319,629	$	279,556	$	282,829
Short-term investments, trading debt securities	29,181		31,173		28,508		30,550
Long-term debt	132,825		136,175		145,963		149,333

Schedule of gain or (loss) recognized for each type of derivative and its location in the Condensed Consolidated Statements of Comprehensive Income

(Thousands of dollars)
	Location of	March 30, 2013	March 31, 2012
	Gain or (Loss)	Amount of Gain or (Loss)	Amount of Gain or (Loss)
	Recognized in Income	Recognized in Income	Recognized in Income
Commodities	Cost of sales	$   (4,808)	$   (2,415)
Foreign currencies	Cost of sales	11,506	(5,417)
Foreign currencies	Foreign currency	4,067	(3,713)
Interest rate	Miscellaneous, net	472	648

Schedule of fair value of each type of derivative and its location in the Condensed Consolidated Balance Sheets

(Thousands of dollars)	Asset Derivatives						Liability Derivatives
	Balance	Fair Value					Balance	Fair Value
	Sheet	March 30,			December 31,		Sheet	March 30,			December 31,
	Location	2013			2012		Location	2013			2012
Commodities	Other current assets	$	4,253	(1)	$	6,916	Other current assets	$	9,989	(1)	$	7,112
Foreign currencies	Other current assets	5,766			-		Other current liabilities	-			4,157
Interest rate	Other current assets	-			-		Other current liabilities	8,803			9,810

(1)   Seaboard’s commodities derivative assets and liabilities are presented in the Condensed Consolidated Balance Sheets on a net basis, including netting the derivatives with the related margin accounts.  As of March 30, 2013 and December 31, 2012, the commodity derivatives had a margin account balance of $15,222,000 and $14,063,000, respectively, resulting in a net other current asset on the Condensed Consolidated Balance Sheets of $9,486,000 and $13,867,000, respectively.